Leading up to March 31, 2024, numerous mutual fund (MF) investors faced uncertainty. Failure to meet specific conditions resulted in requests for re-doing the KYC (know your customer) for their MF investments, or risk being barred from transactions starting April 1, 2024.
KYC procedures are mandatory for mutual fund investors, both residents and non-resident Indians (NRIs), ensuring smooth investment and redemption processes. Here's a straightforward guide on checking your KYC status, understanding different KYC statuses, and the subsequent actions you may need to take.
For Indian Residents:
First, check your KYC status by following these steps:
Understanding your KYC status:
Status: On Hold
Reasons for an 'On Hold' status may include:
This status restricts various financial transactions, such as initiating new Systematic Investment Plans (SIPs) or making new investments.
What can you do?
Online Method:
Ensure your phone is registered with Aadhaar as you will receive an OTP on your Aadhaar-registered mobile number. Follow these steps:
If unable to proceed online, seek assistance from your financial advisor, mutual fund distributor, or online investment portal.
Status: Registered
If your KYC status is 'Registered,' you can invest and redeem from existing fund houses but cannot invest in schemes from new fund houses. Modify your KYC online to avoid issues when investing in new schemes.
Status: Validated
With a 'Validated' status, you are compliant with KYC and can undertake any investment actions without redoing your KYC.
Offline Method:
Submit your physical KYC form and Aadhaar card copy to any fund house to complete your KYC.
For Non-Resident Indians (NRIs):
KYC for NRIs:
NRIs must complete KYC through Aadhaar. Failure to do so will result in a 'KYC Registered' status, necessitating re-KYC for future transactions with new fund houses.
Acceptable Officially Valid Documents (OVDs) for NRIs include a passport, PIO Card, or OCI Card. Providing proof of an overseas address is mandatory, with translations for foreign language documents.
Phone Number Issues:
Many NRIs face mobile number validation issues. Existing NRIs with foreign numbers are exempt but must ensure PAN reflects NRI status.
**This guide aims to simplify the KYC process. Consult your advisor or Mutual Fund Distributor (MFD) for assistance, as this topic is subject to change.
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